Apple Officially Seals The Deal With Beats Electronics

Im not a fan of Dre Beats, or should I say Apple Beats now? Seems like they chose to charge a lot for them to make up for their marketing costs. Maybe apple will improve on them. At very least, apple gains a marketing edge being able to say they offer those head phones. Beats have become a name brand. A name brand of a lousy product. Not a bad product, but not as good as advertised.

 

I think that the main issue is sometimes no the product in itself, but the technology behind it and it's incorporation in Apple's products that will make them be even more valuable.

 

Really? I thought Beats were just a fad? Why would Apple ever want to invest in them. They're not top quality headphones, you could get similar quality headphones for much cheaper to be honest.

 

There's the notion that McDonald's doesn't sell hamburgers, they sell real estate to franchises. Now, you can debate what Apple sells, but they've always been known for being top dog when it comes to marketing. That's part of the reason why they can charge such a premium on their products relative to competing companies. Beats is almost identical in terms of high margins and amazing marketing. While it's true some of us may not see the value in paying such a premium for these things, if you do look around you will see the public littered with iPhone's and/or Beats headsets. In many ways it's a match made in heaven.

That said, valuation on what Beats present and future worth is something that's still up in the air. Presently, seems like they overpaid, but like I said we do have to look at future worth as well. Apple, in all likelihood, can take this brand further.

 

It does sound like a reasonable investment and for a person to be sitting on a stock-pile of cash and those people are probably very happy with that position. However, to those not affected, this could also be a good position for apple stockholders also.

 

This didn't quite come as a surprise to me, considering how popular the Beats headphones are, combined with how popular Apple is... If they start selling Beats together with their other products, or maybe even brand them together in some way, I'm sure this would/will boost apples sales by miles more.

People saying that Beats isn't very popular, or not a big brand, or something like that... Are probably living under a rock. I mean, I see beats EVERYWHERE! And every kid in town wants to have a pair, even though they don't afford a pair. It's the new "thing", it's like flat caps!

 

Seems like a good deal, I do not think a company lile Apple can go into such a big deal without being sure of what they are getting themselves into, so I believe it is a good deal.

 

I'm fairly certain that this sums up what this means for the rest of us.